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They expect you to buy a new book for each device...
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You can have several Kindle devices and apps registered to the same Amazon account, and most books can be on 6 devices at the same time. This works well for most users, myself included. My husband has a Kindle on my account, and for a while, my elderly mom used a Kindle of mine to read my books. She struggled with it, and no longer does. I also have a couple of iDevices running the Kindle app. All within the boundaries set up by Amazon.
I do admit to stripping DRM from some, for use on a Kobo, a few years ago. And I did it to a few reference type books with tighter simultaneous use limits, because I wanted them on more than 1 iDevice.
Of all the DRM freed books I have, I've never given any away to anyone. But I would load up one of my spare Kindles and share it with a few close friends if it ever came up. I can't think of anyone in my sphere who would have any inkling or knowledge of copying or taking any of the books. Most of my women friends are barely able to use a cell phone. Something that really bugs me.